Danone optimizes production capacities, closes 2 plants in Russia
As part of production optimization program, France-based Danone Group announced plans to rearrange its capacities in Siberia and Volga Region, Russia. This will lead to stopping production at Tomsk dairy plant and consolidating volumes at Kemerovo and Krasnoyarsk plants in Siberia, as well as gradual reallocation of production from Cheboksary dairy plant to Samara, Saransk and Kazan Plants in Volga.
The main reasons behind this decision are significant depreciation of sites, low profitability and decrease of sales volume required to upgrade these facilities as per new criteria of quality and environmental safety assurance.